At the beginning of the year (ie 2016) Gold
was able to break upwards the falling wedge
in place since the mid of 2013. Currently, it seems to be in a corrective phase, to retest the previously broken wedge
. It may fall to the 1147-1200 area, coinciding with the 38.2-50-61.8 fib levels and a long term area of price support/resistance
. Meanwhile, RSI
seems to indicate that momentum is increasing to the upside. On the other hand, the group of EMA's (weekly long term GMMA) crossed upwards and seems to be expanding, which may indicate that a new up trend is probably developing. After retesting price may move back up again, targeting the 1390-1420 area, which correspond to ~ 90%-100% of the target predicted by the geometry of the wedge
and includes the key 1400 round level.
Lets see what happens!
Happy trading all!